You Can Escape Outrageous Power Prices in Australia

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Australia is blessed with abundant energy resources. Coal, natural gas, uranium and even quite a bit of oil can be found on our continent. But did you know that you pay for the most expensive electricity in the world?

Sure enough, our state governments found a way to mismanage our abundant resources and electricity industry so badly that we turned an advantageous position into a disadvantageous one.

You’ve probably heard about the coming gas shortage in Australia. And the changes to renewable energy incentives, like solar panel rebates. Here’s the thing. When it comes to your power bill, things are about to get a whole lot worse. And it has the potential to wreak havoc on your cost of living in retirement, and on Australia’s entire economy.

But there’s some good news too.

There is a surprisingly easy, simple and cheap to implement solution to deal with the coming shocks to the electricity system. One that could see you escape the surging costs of power altogether. You’d be completely independent.

I want you to realise just how important this is. And not just to your retirement and cost of living.

Australia’s Economic Future is at Stake

As you’ve probably noticed, Australia’s electricity infrastructure is failing to deliver electricity at a reasonable price. What you might not realise is how disastrous this will prove to be for the country. To get an idea of where we are heading, take a look at Europe.

We face a systemic industrial massacre,‘ Antonio Tajani, the European industry commissioner, told The Daily Telegraph at a recent meeting of policy makers from around the world in Lake Como. ‘The loss of competitiveness is frightening. When people choose whether to invest in Europe or the US, what they think about most is the cost of energy’ explained Paulo Savona, head of Italy’s de­posit insurance fund.

European President Herman Van Rompuy connected the dots: ‘Compared to US competitors, European industry pays today twice as much for electricity, and four times as much for gas.‘ With Europe going on a very expensive green energy crusade to save the world from global warming while America’s scientists point to the 60% growth in polar ice caps as a sign of global cooling, Europe’s industry looks doomed. Power will simply be too expensive.

But what do European electricity prices have to do with you? Well, if Europe faces an industrial massacre from high power costs, Australia faces an industrial Armageddon. And it has nothing to do with green energy, the carbon tax or environmentalism.

These charts from CME, ad energy consultancy, show Australia’s power prices are already outrageous:

And they’re projected to surge even more:

Four of Australia’s states are in the top 6 when it comes to the cost of electricity around the world.  But all this is just the beginning. It’s the appetiser you’ve already had to swallow when you looked at your power bills as they surged – up 70% in four years according to government figures.

How to Opt Out of the Coming Crises

If you want your retirement to be robust against these changes, you need a way to opt out.  Politicians have been promising you so called ‘Direct Action’ on climate change. The last person I would rely on for any kind of direct action is a politician. And the first person is you. So that’s what I’m proposing today – for you to take direct action on power prices before they rise. And, with the help that Australian power companies fear most, I’m can show you how.

But is going off the grid really plausible? Yes, it is. And you’re going to discover exactly how to
do it.

I asked my friend Len McKelvey to tell the story of how he went off the grid. He even managed to turn a $10,000 utility fee into a $10,000 cheque from the same utility company. Now Len’s case was unique. But as you’ll see you can go off the grid in an affordable way today, even before electricity costs surge even further.

Your Biggest Ally in the War for Affordable Power

Len is Australia’s leading guru when it comes to power. He’s the go to man for some of
Australia’s biggest power users, and utility companies despise him. Recently, he saved a Gold Coast theme park so much money on their power bills that the utility company sent out 4 engineers to check their equipment. They even asked the park engineer whether he had ‘turned the power off’. In other words, he’s just the man to explain what’s going on, and what you should do
about it.

But rather than writing about what’s in store for your power bill, and how to give your utility
company a rude shock before they give you one, I decided to record an interview with Len in person. I wanted his passion and experience to get through to you first hand. As you’ll see, he’s quite a character. You can access the interview by clicking here.

Nick Hubble+
Editor, The Money for Life Letter

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Nick Hubble
Nick Hubble is a feature editor of The Daily Reckoning and editor of The Money for Life Letter. Having gained degrees in Finance, Economics and Law from the prestigious Bond University, Nick completed an internship at probably the most famous investment bank in the world, where he discovered what the financial world was really like. He then brought his youthful enthusiasm and energy to Port Phillip Publishing, where, instead of telling everyone about The Daily Reckoning, he started writing for it. To follow Nick's financial world view more closely you can you can subscribe to The Daily Reckoning for free here. If you’re already a Daily Reckoning subscriber, then we recommend you also join him on Google+. It's where he shares investment research, commentary and ideas that he can't always fit into his regular Daily Reckoning emails.
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8 Comments on "You Can Escape Outrageous Power Prices in Australia"

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Lachlan
Guest

Nick what do people actually “deserve”…or does it really figure?

https://www.youtube.com/watch?v=XuEMsfeVMUI

maybe skip to 5.55

Derek
Guest

The final nail in Australia’s manufacturing, well done Canberra.

Mark
Guest

. . . 60% growth in polar ice caps . . .

That triggered my BS detectors. Given such a howler, can the rest of the article be correct?

Lachlan
Guest

Mark if you plug “60% growth in polar ice caps” into google you will see that Nick is not making that figure up. I am not backing or advocating anything said within any articles. Consideration the obvious politicisation of science these days that might take a long time to achieve.

Bulldust
Guest
Mark: The Arctic minimum sea ice extent hit a particularly low value in 2012, so 2013 looked quite good by comparison. Clearly the 60% (in reference to the minimum sea ice extent) could be true, but it is a clear case of cherry-picking. The minimum sea ice extent in 2013 was still below the 1979-2000 average. So technically the 60% stat may be correct, but the context is wrong. It is hardly a growth in sea ice that is unprecedented, rather a bounce back from a particularly low minimmum last year. Climate sceptics are not running with this story as… Read more »
Lachlan
Guest

Actually NASA reported the 60% increase in August this year.

The run away warming people predicted an ice free north pole by summer 2013. I’ll just add that to the other list of 1000’s of dogmatically stated, catastrophic climate disaster predictions that did not even come close.

Mark
Guest
Thanks chaps! Via googlation I see reports of the 60% increase in Arctic ice, as you say. (Hadn’t read that story before.) The 60% figure is from taking the ratio of minimum Arctic ice coverage area for the years 2012 and 2013, and not the ratio of masses of ice. They seem to cite NASA. The NASA website itself is rather more sober, saying that after a cool summer, the Arctic ice area is not nearly as small as the 2012 minimum, but still the 6th smallest observed. It appears that the 2012 melt was quite extreme, so matching that… Read more »
Lachlan
Guest
“Anti-science”…to the complete contrary. Imo it is a consistent trait of AGW proponents on forums to use psychological projection. Because this AGW religion has abused science and scientists. The Daily Reckoning like the majority of people in this country appear to be skeptical on this issue and why wouldn’t people feel that way? I can find hundreds of scientists speaking their mind who say CO2 lags temp and is an insignificant greenhouse gas. And many who have blown the whistle on the corruption in the system. I can also only ponder how anyone could not question this issue after all… Read more »
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